Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?

Data which goes thru the consensus mechanism is determined in multiple sources.

  1. How is this different from how truth is determined in a central database? In central database thruth is determined by a single validator.
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1.Consensus on the blockchain is built on incentive. The network of computers are all incentivized to tell the truth because they receive a monetary benefit.

  1. In a centralized database it can be altered and changed therefore you never know what the truth really is. Did your goods or services really come from X. Were they really manufactured by X?
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  1. What does it mean when we say that in blockchain, consensus determine the truth?
    The different nodes agree by consensus on the validity of a transaction. It is a trustless network and the different participants agree on the truth as they are incentivized to come to agreement.

  2. How is this different from how truth is determined in a central database?
    In a centralized system, there is one unique source of truth, and trust must be placed in the central authority.

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  1. that all nodes on the network can simultaneously verify the validity of a transaction, and allow all parties to behave in a trust-less manner.

  2. on central databases all information is controlled from a centralized authority who could potentially change data if they wanted.

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Consensus is a network of computers that come to an agreement to include or not include information on the ledger/blockchain/database. It creates trustlesness and doesn’t have one central authority. It involves many to agree and verify. Consensus is achievable through incentives to keep all involved honest.

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  1. Blockchain and consensus go hand in hand. Consensus is the act of multiple nodes across the network ‘agreeing’ whether or not a transaction is valid before it takes place. This is done by verifying through checking the pre-existing blockchain to see if all conditions are met and correct prior to verifying the transaction.

  2. The above example differs from centralized databases by having a mathematical protocol in place to ‘check’ transactions before they take place. In the centralized model, an organization or individual can potentially duplicate (steal) or modify data to induce a desired outcome, usually not a good one.

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  1. Teamwork between nodes work together to form a consensus about a transaction which is incentivized

  2. There is no centralized authority and is a trustless, transparent system. The database can intervene but no person can intervene

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  1. Consensus determines the truth as the outcome needs to be agreed upon by the network. Consensus removes the need for trust, there is an incentive to be truthful and you can be confident that everyone is telling the truth as it can be verified by checking the network.

  2. In a central database, truth is determined by the central authority/administrator.

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Homework on Consensus - Questions

  1. What does it mean when we say that in blockchain, consensus determine the truth?
    As the blockchain stores all tx and every node (participant) in the network can check all tx the result of all those checks is the consensus. if a tx is wrong the majority (>50%) will have the same result and the wrong tx will be not processed in the next block.

  2. How is this different from how truth is determined in a central database?
    A central DB can not be checked by every node as access may be prohibited. This leaves room for speculation…

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100% of nodes must agree on a tx or the network might fork. :slight_smile:

1 What does it mean when we say that in blockchain, consensus determine the truth?
Consensus is determined by what the agreed view is at the time of review. Truth is amde up of a variability of factors but most always established by crowd agreement making up the current reality.

  1. How is this different from how truth is determined in a central database?
    Transparency
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  1. What does it mean when we say that in blockchain, consensus determines the truth?
    CONSENSUS determines the truth because once data is accepted in the public ledger, a network of computers must mutually agree that such data/transaction presented is correct to confirm the transaction. The consensus is achieved through a popular mechanism known as PoW :hammer_and_wrench:

  2. How is this different from how truth is determined in a central database?
    The central database is the complete opposite of the consensus mechanisms of the blockchain. Truth in the central database is determined by an entity/third party application. Is there such a consensus agreement or incentives in the central database like blockchain does? Altered data added to the central database could result in errors and system failures. :thinking:

:face_with_monocle: Correct me if I’m wrong

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This is true if you for example try to alter relational data. But you wouldn’t really crash the database if you would just change the balance for a user from 0 to 1000000 :slight_smile:

  1. Decided up on collectively by a required number of parties.
    2.A centralised authority can change anything, so it requires trust.
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  1. Consensus is simply the agreement of computers on the network that an addition to the blockchain is correct and belongs on the ledger.

  2. Consensus can only be achieved on a central database by an independent third (or 4th, 5th) party. Even then it still requires trust to believe that the data is true. Given the number of confirmations that are required on a decentralised network (and that they are incentivised!), it ensures the blockchain can verify that data it stores is correct.

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  1. As a number of computers look at the data being received and all have to agree that it is correct.
    2.Truth in a central database is determined by people, who may have other motives for deciding what the ‘truth’ is.
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  1. Consensus is a mutual agreement and based on truth
  2. A central authority decides on what the actual truth is and you are incentivised by being honest
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What does it mean when we say that in blockchain, consensus determines the truth?
With Consensus, a number of unrelated parties need to agree on a blockchain entry for it to be considered the Truth. They are incentivized with money to do this.

How is this different from how truth is determined in a central database?
Consensus is Trustless verification by independent parties and doesn’t require faith in those that create the database entry. Regular central databases can be altered, don’t use consensus and require trust in the creator of the database.

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  1. Consensus determines the truth when all the computers on the network agree that the transaction is good (after verifying) to be added to the blockchain. If the transaction is not good (dishonest) then it doesn’t get added to the blockchain.
  2. The truth in a central database is determined by the database administrator or single authority.
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Thanks. so either they all agree on the same result or the network has to fork? so what happens if 1 node does not agree. this will not halt the network, right? and it will not cause a fork immediately, right?
thanks…